The main stock indices were hovering near the day's high in afternoon trade. Banks, financials and metal stocks were in demand. Global stocks were positive as investors watched for U.S. election results.
At 13:20 IST, the barometer index, the S&P BSE Sensex, soared 517.30 points or 1.30% at 40,274.88. The Nifty 50 index rallied 146.60 points or 1.26% at 11,815.75.
ICICI Bank (up 5.03%), HDFC (up 3.57%) and HDFC Bank (up 1.97%) boosted the indices.
The broader market lagged the benchmarks. The S&P BSE Mid-Cap index rose 0.42%. The S&P BSE Small-Cap index gained 0.54%.
Buyers outnumbered sellers. On the BSE, 1,403 shares rose and 1,024 shares fell. A total of 195 shares were unchanged. In Nifty 50 index, 36 stocks advanced while 14 stocks declined.
Foreign portfolio investors (FPIs) bought shares worth Rs 740.61 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 533.97 crore in the Indian equity market on 2 November 2020, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 4,68,71,264 with 12,06,187 deaths. India reported 5,41,405 active cases of COVID-19 infection and 1,23,097 deaths while 76,03,121 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
US Election 2020:
Democratic nominee Joe Biden leads President Donald Trump in a series of polls in their final sprint for the race for White House before polling ends on Tuesday. A win by challenger Joe Biden in the presidential race might lead to more economic stimulus.
Gainers & Losers:
Hindalco Industries (up 4.36%), State Bank of India (SBI) (up 3.65%) and Power Grid Corporation of India (up 3.35%) were major gainers in Nifty 50 index.
UPL (down 4.52%), NTPC (down 2.97%), Hindustan Unilever (down 0.91%), IOCL (down 0.90%) and Adani Ports & SEZ (down 0.80%) were major losers in Nifty 50 index.
Results Today:
Sun Pharmaceutical Industries (up 0.01%), Adani Ports and Special Economic Zone (down 1.47%), Dabur India (up 1.51%), PVR (down 0.37%) and Ajanta Pharma (up 1.94%) will announce their quarterly earnings today.
Earnings Impact:
Punjab National Bank (PNB) fell 0.72%. PNB's net profit surged 22.4% to Rs 620.81 crore in Q2 September 2020 from Rs 507 crore in Q2 September 2019. Total income grew by 50.7% to Rs 23,438 crore in Q2 September 2020 over Q2 September 2019. Net Interest Income (NII) for the quarter grew by 29.3% to Rs 8,393 crore from Rs 6,492 crore in the corresponding quarter of the previous year. Provision and contingencies spiked by 60% to Rs 4,696.15 crore in Q2 FY21 from Rs 2,928.90 crore in Q2 FY20. The Provisioning Coverage Ratio as at 30 September 2020 works out to 83%.
The ratio of gross NPAs to gross advances stood at 13.43% as on 30 September 2020 as against 14.11% as on 30 June 2020 and 16.76% as on 30 September 2019. The ratio of net NPAs to net advances stood at 4.75% as on 30 September 2020 as against 5.39% as on 30 June 2020 and 7.65% as on 30 September 2019.
Cadila Healthcare soared 7% after consolidated net profit soared 411% to Rs 423.60 crore on 16% jump in net sales to Rs 3,762.30 crore in Q2 September 2020 over Q2 September 2019. EBIDTA margin stood at 22.6% during the quarter, which improved significantly by 370 basis points (bps) compared to 18.9% registered in Q2 FY20. The pharmaceutical major said that it had significantly reduced its net debt by Rs 2,709 crore in the first six months of FY21, which is 40% reduction from net debt reported in March 2020. The net debt as on 30 September 2020 stood at Rs 4,031 crore as against Rs 6,740 crore as on 31 March 2020.
Additionally, Cadila Healthcare said that it will be completing the pre-clinical development on ZYIL 1, a small molecule NCE positioned for management of critically ill COVID-19 patients. The Phase II clinical trials of Desidustat in the management of COVID-19 is underway at Mexico. The firm has also completed Phase-II clinical trials of Pegylated Interferon Alpha-2b in India for management of COVID-19. The company has launched Remdesivir injection in India and Emerging markets at the most economical price providing greater access to the therapy by making it more affordable to patients.
The Ramco Cements advanced 2.03% after the company posted a 41.4% jump in consolidated net profit to Rs 243.52 crore in Q2 September 2020 from Rs 172.26 crore in Q2 September 2019. The cement manufacturer's net sales declined 5.1% to Rs 1,216.71 crore in Q2 September 2020 over Q2 September 2019.
The Ramco Cement said during the quarter, the sale of cement for the company fell 19% to 2.21 million tons from 2.72 million tons posted in the corresponding period of the previous year. The sale was impacted mainly because of lockdown imposed, restricted access in containment zones due to COVID-19 and unusually heavy rains in Kerala, Karnataka, AP and Telangana during August and September 2020. Even though it has grown in eastern markets, heavy rains affected the growth rate in those markets. However, the company expects demand to pick up in the coming quarters.
Godrej Properties tumbled 8.82% after the realty major's consolidated net profit fell 77.5% to Rs 7.1 crore in Q2 September 2020 from Rs 31.57 crore in Q2 September 2019. Revenue from operations tumbled 65.5% to Rs 89.50 crore in Q2 September 2020 from Rs 259.67 crore in Q2 September 2019. Profit before tax (PBT) stood at 22.57 crore in Q2 September 2020, a 69% decline over Rs 72.88 crore in Q2 September 2019.
Total tax expenses fell 59% to Rs 15.47 crore in Q2 September 2020 over Q2 September 2019. Consolidated EBITDA tumbled 43% to Rs 77 crore in Q2 September 2020 from Rs 135 crore in Q2 September 2019. EBITDA/Total income fell to 32.3% in Q2 September 2020 from Rs 36.4% in Q2 September 2019.
Narayana Hrudayalaya slipped 1.16% after the company reported a net loss of Rs 3.42 crore in Q2 FY21 as against net profit of Rs 45.33 crore in Q2 FY20. Net sales during the quarter declined by 26.9% year-on-year (Y-o-Y) to Rs 600.73 crore. EBITDA slumped 71% to Rs 37.20 crore in Q2 FY 21 from Rs 128.10 crore in Q2 FY20. Pre-tax loss in Q2 September 2020 stood at Rs 29.54 crore as against a pre-tax profit of Rs 62.17 crore in the same period last year.
As on 30 September 2020, the consolidated net debt was Rs 553.90 crore, representing a net debt to equity ratio of 0.55. (Out of which, debt worth $44.5 million is foreign currency denominated).
Global Markets:
Shares in Europe and Asia advanced ahead of the US Presidential election on Tuesday. Rising infection rates in Europe, that prompted more governments to reimpose restrictions on travel and business, continue to weigh on investor sentiment.
The US stocks finished choppy session higher on Monday, 2 November 2020, as investor's risk sentiments were partially helped by a surprisingly big improvement in Chinese economic data. Ahead of the presidential election, polls continued to show that Democrat Joe Biden held a strong lead over Donald Trump.
Shares of mega cap technology shares slid with Facebook (down 0.7%), Amazon (down 1%), Apple (down 0.1%) and Microsoft (down 0.1%) all lower. But the rebound in crude oil prices pushed Chevron (up 3.8%) higher. Shares of cleaning products company Clorox rose 4.2% after reporting its strongest quarterly sales growth in two decades. Market research firm Nielsen Holdings shares gained 3.9% on plans to sell its consumer goods data unit for US$2.7 billion to private equity firm Advent International.
US construction spending rose by 0.3% to an annual rate of $1.414 trillion in September after climbing by 0.8% to $1.410 trillion in August, the Commerce Department revealed in a report released on Monday. The weaker than expected growth in construction spending came as an increase in spending on private construction was partly offset by a drop in spending on public construction.
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